FAQ page,Office of Agricultural Services, Montgomery County, MD (2024)

1. Open the Montgomery County Zoning map online at http://www.mcatlas.org/zoning/. Other map features can be accessed at https://mcatlas.org/viewer/
2. Enter the address-of-interest in the Address/Place Name Search box in the upper right-hand corner or us zooming tools on upper left-hand corner of the map to navigate to the property-of-interest.
3. Click on the property-of-interest. A “ Property Info” box will appear on the left-hand side of the screen. The second section of this box is entitled, “ Zoning Info”. The Zone information is contained in this box. Click the zone title for more detailed information.

Find the zoning for your property, following these steps:

Step 1

1. Open the Montgomery County Zoning map online at http://www.mcatlas.org/zoning/
2. Enter the address-of-interest in the Address/Place Name Search box in the upper right-hand corner or us zooming tools on upper left-hand corner of the map to navigate to the property-of-interest.
3. Click on the property-of-interest. A “ Property Info” box will appear on the left-hand side of the screen. The second section of this box is entitled, “ Zoning Info”. The Zone information is contained in this box. Click the zone title for more detailed information.

Step 2

1. Find the zoning for your property, described above.
2. Open the Montgomery County Zoning Ordinance (Chapter 59)
3. Click the "+" sign next to Montgomery County Zoning Ordinance
4. Click the "+" sign next to Chapter 59
5. Expand (click the “+” sign) next to “Article 59-3. Uses and Use Standards”
6. : Expand (click the “+” sign) next to “ Division 3.1. Use Table”
7. Click on “ Section 3.1.6. Use Table”. Find the zone of your property in the horizonal zone list across the top of the table, and the corresponding cell for the agricultural use you are investigating.
   • If the cell contains “ P”, the use is permitted in the zone;
   • if the cell contains an “ L”, the use is permitted if it meets the limited use standards in Division 3.2 through Division 3.7;
   • if the cell contains a “ C”, it is a Conditional Use and the use must meet the conditional use standards in Division 3.2 through Division 3.7 and requires approval by the Hearing Examiner under Section 7.3.1;
   • if the cell is blank, the use is not permitted in the zone.
8. Research additional information related to the use you are investigating by clicking on the link to the appropriate “ Definition and Standard” in the table, or by choosing a corresponding section from “ Division 3.2. Agricultural Uses” on the menu of the left-hand side of the screen.

Agricultural products can be marketed in Montgomery County at various outlets, including on-farm markets and farmers markets. Each outlet has its own set of requirements.

Farmers Markets:

Each farmers market is run independently and has its own administrative processes and oversight authority.

1. To sell products at a farmers market, contact the Market Master for that market.
2. To sell prepared foods at a farmers market, you must obtain a license from the Montgomery County Department of Health and Human Services.

Sales in the public right-of-way:

If you are interested in selling agricultural products in the public right-of-way, become a Certified Agricultural Producer through the Department of Permitting Services.

On-farm markets:

If you want to sell your products at an on-farm market, you may need to obtain permits from the Department of Permitting Services (DPS) for a market building to which the public has access. See FAQ "Do I Need Permits to Build Structures on My Farm?"

Other marketing opportunities:

The OAG maintains a Farm Directory (coming soon!) and promotes an Annual Farm Tour and Harvest Sale. If these marketing opportunities are of interest to you, please contact OAG at (301-590-2859).

Ag zoning notification requirements:

Do you live near a farm? If you’re planning to buy or sell a home in a rural area or near farmland, this notification requirement may apply to you. In an effort to promote the primary land-use of agriculture and farming in the Agricultural Reserve, the County Council passed Bill number 12-07, Real Property – Agricultural Zones - Disclosure effective January 14, 2008. The purpose of Bill 12-07 is to inform and educate potential residents in agriculturally zoned areas that agriculture is the preferred land-use and farming operations are permitted at all times. Residents and other occupants of property within or near land in agricultural zones should be prepared to accept the effects of usual and customary agricultural operations, facilities, and practices, including noise, odors, dust, smoke, insects, operation of machinery, storage and disposal of manure, unusual hours of operation, and other agricultural activities.

Bill 12-07 states, “if any real property is located in, adjoins, or confronts an area zoned agriculture…the seller must disclose to each prospective buyer, before the buyer signs a contract for the sale of the property, that existing County and State law is intended to discourage owners of real property adjacent to agriculture-zoned land from filing certain lawsuits against an owner or operator of an agricultural use in those areas.”
Link: Sec. 40-12B. Real property sold in Agricultural Zones.

Ag transfer tax

The Office of Agriculture is often asked by landowners about when application of State Agricultural Transfer Tax, the MARBIDCO Surcharge and County Agricultural Transfer Tax are applied to a property when it is transferred. Which tax applies and how much tax is charged depends upon several factors. These factors include whether or not the property will remain in agricultural use, how long the property has been agriculturally assessed,whether or not the property is preserved by a perpetual agricultural preservation easem*nt and how the property is zoned. Below are three examples with explanations detailing how these taxes and surcharges are applied, and how much the calculated tax would be depending upon the factors outlined above.

How Does the State and County Agricultural Transfer Tax including the MARBIDCO Surcharge Work?
Here are three examples detailing 2 properties that transferred showing the following:
How the State Agricultural Transfer Tax was calculated
How the County and State Shares of the State Ag Transfer Tax are distributed
How the MARBIDCO Surcharge is calculated
How the County Agricultural Transfer Tax was calculated

Explanation of how the Transfer Taxes are imposed on agriculturally assessed land when the property is removed from agricultural use
Example # 1:
When a property is transferred that is agriculturally assessed the State agricultural transfer tax is imposed if the property is removed from agricultural use. The State agricultural transfer tax is 5% of the sale price or consideration minus the value of the improvements. The State agricultural transfer taxes collected is then shared between the County-75% and the State-25%. An additional 25% MARBIDCO Surcharge is imposed and the County imposes a Local agricultural transfer tax.

* The MARBIDCO surcharge is calculated as 25% of the total State Agricultural Transfer Tax paid.

Explanation of how Transfer Taxes are imposed when agricultural assessment and agricultural use continues
Example # 2:
For a Property Located in the Agricultural Reserve AR-zone:

State Agricultural Transfer Tax (SATT)

HB20 removed this provision. Instead of waiving the SATT after 5 years in agricultural use post-assessment change, the amount of SATT to be paid is now calculated based on the amount of time between the change in assessment and when the property is transferred.

1. The SATT is reduced by 25% if the time between the change of assessment and the property's transfer is at least 1 full taxable year.
2. The SATT is reduced by 50% if the time between change of assessment and the property's transfer is at least 2 full consecutive taxable years.
3. The SATT is reduced by 65% if the time between change of assessment and the property's transfer is at least 3 full consecutive taxable years.

HB20 does require that a minimum amount of SATT be paid, but this amount decreases as the amount of time between the change in assessment and the property's transfer increases.
For example:

1. After July 1, 2019 - a property had its assessment changed on July 1, 2019, then the property transfers after July 1, 2020, the amount of SATT to be paid will be 75% of the normal amount.
2. After July 1, 2019 - a property had its assessment changed on July 1, 2019, then the property transfers after July 1, 2021, the amount of the SATTto be paid will be 50% of the normal amount.
3. After July 1, 2019 - a property had its assessment changed on July 1, 2019, then the property transfers after July 1, 2022, the amount of the SATT to be paid will be 35% of the normal amount. This example represents the minimum amount of SATT to be paid.

HB20 went into effect on July 1, 2019. Any properties that had the assessment changed from agricultural use to residential or other use prior to the bill going into effect will need to contact the State Department of Assessment and Taxation to determine the amount of SATT due upon sale. The Office of Agriculture cannot determine when a property assessment was changed or calculate taxes due.

For assistance with calculating SATT due, please contact the Maryland Department of Assessments and Taxation ( https://dat.maryland.gov/pages/default.aspx).

For more information on HB 20, please visit the Maryland General Assembly Page.

County Agricultural Transfer Tax
If the property is located in the Agricultural Reserve-AR zone or encumbered by a permanent agricultural easem*nt the County agricultural transfer tax is 1% minus the value of the improvements.

Property assessed for agricultural use for 1 year = 2.4%
Property assessed for agricultural use for 2 years = 3.8 %
Property assessed for agricultural use for 3 years = 5.2 %
Property assessed for agricultural use for +3 years = 6.0%

An agricultural use assessment allows a property to be taxed at the agricultural rate, rather than the “highest and best use” rate, which would be residential. This lower property tax rate helps to keep farming affordable in Montgomery County. To determine if your property may qualify for an agricultural use assessment: Review the Maryland Assessment Procedure Manual

In summary, properties may be eligible for an agricultural use assessment if they meet certain criteria.

1. Properties less than 20 acres but greater than 3 acres may qualify for the ag use assessment if one of the following tests are met:
   • 3-5 acres are devoted to agricultural activities, and at least $2500 gross income from approved agricultural activities, or
   • 5-20 acre are devoted to agricultural activities
2. Properties greater than 20 acres in size must meet ratio requirements to qualify for an agricultural use assessment. In Montgomery County, the ratio is 5:1.
   • Example: A taxpayer owns a 200-acre property in Montgomery County and 25 acres are devoted to active agricultural activities. The amount of actively used land eligible for agricultural use assessment is 125 acres (25 x 5 = 125). The remaining 75 acres are valued and assessed at market value.
3. Woodland properties or properties with woodlands under management are valued differently. Please see Chapter 18.02.03. Agricultural Use Assessments of the Code of Maryland Regulations for more information.

To request

for your property, you must complete and submit the Maryland State of Assessments & Taxation

and the

.

In Montgomery County, landowners can choose from seven separate agricultural land preservation programs. Each of these programs place an easem*nt on the property which prevents future commercial, residential or industrial development of the land. The programs available are:

1. Building Lot Termination Program (BLT)
2. Conservation Reserve Enhancement Program
3. Legacy Open Space Program (LOS)
4. Maryland Agricultural Land Preservation Foundation (MALPF)
5. Maryland Environmental Trust (MET)
6. Montgomery County Transfer of Development Rights Program (TDR)
7. Montgomery County Rural Legacy Program (RLP)
8. Montgomery County Agricultural Easem*nt Program (AEP)

You may find it economically advantageous to participate in one of these agricultural land preservation programs if you and your family intend to continue farming or if you desire to have your land protected from future development. Montgomery County is committed to preserving farmland to ensure the viability of the agricultural industry which contributes to the County's economic diversity.

Compare and contrast the agricultural land preservation programs that purchase development rights in exchange for placing an easem*nt on the property. Click here.

If an existing agricultural building will be used for agritourism and will have an occupancy of fewer than 100 people, a building permit will not be required. These agricultural buildings will still need to meet electrical and structural safety standards and conform to ADA requirements.

Even when no building permit is required from the Department of Permitting Services for the construction of an agricultural building, the building and associated erosion and stormwater control measures must be constructed with oversight from the Montgomery Soil Conservation District. In addition, agricultural buildings are still required to get all necessary electric, well, and septic permits. To request technical assistance from the Soil Conservation District, please complete the request form and submit it to the District Staff.

Farm Alcohol Production is allowed as a limited use in the Agricultural Reserve when it is an accessory use to the farm. Therefore, a tasting room or event facility that is inside an existing agricultural building will not require a permit if it is built for a occupancy of fewer than 100 people.

Forest Conservation ( Ch. 22A) When a building permit is required, forest conservation will be required as part of the permitting and approval process.

The Montgomery County Department of Transportation is responsible for maintaining trees along County roadways. Department of Transportation Tree Pruning Page.

If you need additional assistance, please contact OAG at 301-590-2823.

The requirements to farm in the county will depend largely on the type of operation. Some examples of requirements are listed below. Additional information can be provided by OAG when your facility-specific information is known.

Soil Conservation and Water Quality Plan:

A Soil Conservation and Water Quality Plan from the Montgomery Soil Conservation District is required if you want to participate in Federal conservation programs, have 11 or more horses onsite, or need a stable license. Plans are free, provide good information, access to cost share opportunities and are available for any size farm. Additionally, prior to cutting/removing any trees or moving any earth, you should seek assistance from the Soil Conservation Distict by submitting a Cooporative Agreement. Contact Montgomery Soil Conservation District or call 301-590-2855.

Nutrient Management Plan:

If you have 8 animal units (8,000 lbs) on site or gross $2500 in agricultural sales, you will need a Nutrient Management Plan. Please contact the University of Maryland Extension Agricultural Nutrient Management Program for more information or call 301-590-2840.

Pesticide Applicator’s License:

If you apply pesticides to your farm operation, you may need a private applicator’s license. Pesticide Applicator Certification and Business Licensing Requirements Document

Stable Licenses:

You will need a state stable license if you board or sell more than 5 horses annually or hire or give instruction on one or more horses. Contact MDA Maryland Horse Industry Board or 410-841-5861.

You may need a county stable license, as well. Contact the County Animal Services Division to see if that is a requirement for your farm 240-773-5900.

If you need help interpreting what kind of stable license you need to obtain, please call the OAG at 301-590-2823.

If you are interested in developing a Farm Alcohol Production (FAP) business on your property, please contact Mike Scheffel ([emailprotected]) and/or Natalia Salazar ([emailprotected]) at the Office of Agriculture to discuss your ideas and obtain guidance on the process. One of your first steps would be to apply to the State of Maryland for an Alcohol Manufacturer License.
Montgomery County has many requirements and conditions for FAP that vary depending on various aspects of the property and proposed business. This information sheet provides preliminary considerations for new FAP businesses:

• This PowerPoint presentation and guidance document will help you better understand the requirements for handling wastewater from your new business.
• This document provides well and septic guidelines for FAP facilities.

Montgomery County Code: Section 3.2.10. Accessory Agricultural Uses
B.Farm Alcohol Production
1.Defined
Farm Alcohol Production means the transformation of agricultural products into alcoholic beverages. Farm Alcohol Production includes wineries, cideries, breweries, or distilleries on farms. Farm Alcohol Production may include other activities unrelated to the production and sale of alcohol or farming under certain circ*mstances.
2.Use Standards
a.Where Farm Alcohol Production is allowed as a limited use, it must satisfy the following standards:
i.The production capacity and associated activities of the alcoholic beverage must comply with the license issued by the State of Maryland Comptroller's Office.
(a)A brewery must have a Class 8 Farm Brewery License;
(b)A winery must have a Class 4 Limited Winery License; and
(c)A distillery must have a Class 1 Distillery License.
ii.Some ingredients used in the production process must be grown on site.
iii.Wineries and cideries must have at least 5 acres of fruit used in alcohol production grown on site or on abutting or confronting property rented by the producer, and:
(a)have at least 20 acres of grapes or other fruit in cultivation on property they own, rent, or control; or
(b)source a majority of their grapes or other fruit from Maryland.
iv.Breweries and distilleries must source a majority of their ingredients, if available at competitive prices, from Regionally-Grown Products. At least 1.0 acre of ingredients must be grown on site for use in the alcohol production process.
v.A plan with a schedule to increase the use of local Montgomery County agricultural products in the production process must be submitted to the Department of Permitting Services.
vi.The underlying land must be classified as agricultural by the State Department of Assessments and Taxation and the facility must be an accessory use of the farm.
vii.Subject to all licensing requirements, the facility may:
(a)operate an on-site tasting room for its products; and
(b)prepare and sell food to the extent allowed by the State alcohol manufacturing license.
viii.Events and activities that are normal and customary to the regular operations of a winery, cidery, brewery, and distillery, including membership-related events and traditional festivals related to agriculture or the business of alcohol production, are allowed without a limitation on the number of guests. A maximum of 5 days of events that require an entrance ticket or a cover charge is allowed each calendar year.
ix.Weddings, corporate retreats, and other events accessory to the production of alcohol are allowed:
(a)Except as allowed under subsection (c), the maximum number of participants at any event is 225. There is no limit on the number of events with 100 participants or fewer. The total maximum number of days of events in a calendar year is 50 for events with more than 100 participants.
(b)A written log of all events must be kept by the holder of the alcohol production license. That log must be available for inspection by the Department of Permitting Services.
(c)As a conditional use under Section 7.3.1, the Hearing Examiner may approve additional days of large public events and events with greater numbers of participants for either normal and customary events or other accessory events.
x.If any structure is used for activities under subsection vii, viii, or ix, the structure must satisfy all building, life safety, fire, and sanitation code requirements.
xi.Illumination at the property line must be limited to 0.1 footcandles or less.
xii.All parking must be accommodated on site.
xiii.Noise levels must satisfy Chapter 31B standards.
xiv.Any new building or surface parking area used for Farm Alcohol Production and related events must be located at least 100 feet from an existing dwelling unit on an abutting property.
xv.In the AR zone, except for sites where the property owner obtained a Maryland alcohol producer's license before October 2, 2018, the minimum site area for breweries and distilleries is 25 acres.
xvi.In the RE-1 and RE-2 zones, for breweries, distilleries, and wineries:
the minimum site area is 25 acres;
the site must be located in an area classified as sewer category 6 in the Ten Year Comprehensive Water Supply and Sewerage Systems Plan; and
access must be directly from a roadway classified in the approved Master Plan of Highways and Transitways as a primary residential or higher roadway.
b.Where Farm Alcohol Production is allowed as a conditional use, it must satisfy the standards under Section 7.3.1.